Belgium, (Brussels Morning Newspaper) The European Commission has launched consultation on planned reform of the EU energy market.
In a statement released on Monday, the EC noted that new rules are aimed at improving consumer protection and making prices less volatile.
At the same time, the Commission stressed the importance of strengthening the green push and investing more in renewable energy.
“The current system has delivered an efficient, well integrated market for many years, allowing the EU to reap the economic benefits of a single energy market, ensuring security of supply and spurring the decarbonisation process,” the Commission stated.
EC blames the system
The EC noted that the system “has also demonstrated some shortcomings,” blaming it for high and volatile energy prices that have negative effects on consumers.
“A reform is therefore needed,” the EC concluded and pointed out that planned changes will make the market more resilient and speed up the green transition enshrined in EU rules.
“It is crucial that all Europeans, from large industrial consumers to SMEs and households, benefit from the growth and low operational costs of renewables,” the Commission stated.
Kadri Simson, European Commissioner for Energy, noted “the EU’s electricity market has served us well for over twenty years… but the unprecedented energy crisis we are facing shows that we need to make the electricity market design fit or the future, allowing it to deliver the benefits of affordable clean energy to everyone.”
She concluded that “contributions from a wide variety of stakeholders” will help the EC to draw up new rules.
The EC announced plans to present its legislative proposal by the end of March this year and noted that the consultation will end on 13 February.
The consultation process will focus on “making electricity bills less dependent on short-term fossil fuel prices and boosting the deployment of renewables,” improving market surveillance, integrity and transparency, and improving consumer protection, among other.
The EC reminded that energy prices have been rising since 2021, stressing that unprecedented market volatility and price spikes have severe negative effects on households and the economy as a whole.
EC President Ursula von der Leyen announced plans to draw up new energy market rules last year, after the EU Council called on the Commission to do so.